Campaign Company, Which Applies Overhead to Production on the Basis

Multiple Choice

Campaign Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 12,000 Actual fixed overhead incurred: $730,000 Actual machine hours worked: 60,000 Budgeted fixed overhead: $720,000 Planned level of machine-hour activity: 50,000 If Campaign estimates four hours to manufacture a completed unit, the company's standard fixed overhead rate per machine hour would be:

A) $12.00.
B) $14.40.
C) $14.60.
D) $15.00.
E) None of the answers is correct.